The Archive · 1936

Huge Losses Suffered in Revenue

NIES the protected smuggling in the north is checked, securities for domestic and foreign loans will be seriously affected and legitimate trade will be destroyed. This is the gist of an authoritative report giving details of numerous incidents in which Chinese Customs preventive service was rendered ineffective due to Japanese intervention.

The rapid growth of this illicit trade commenced from August} 1 Jast year, the loss from that month to March this year being about $1,700,000 a month, Measured by the loss of $8,000,000 revenue in April alone, when smuggling reached alarming proportions, the total decrease in a year would amount to almost $100,- 000,000, nearly one-third of the Customs annual income.

Trade is being diverted from Shanghai and other ports to Dairen where goods are taken delivery of and openly smuggled into China by land and sea. The smuggled goods are distributed, by means of both the Tientsin-Pukow and the Peiping-Hankow Railways and their connecting lines, That the Japanese-inspired smuggle ing activities, carried on despite official protests, have lately assumed iilarming proportions in North China, notably since February this year, was. fovealed in a report just Ublained from the Customs authorities.

'The question "how badly has the Customs been affected by this clandestine trade in the matter of revenue?" which has been repeatedly asked. in' various. circles, was foMeially answered for the first time in the statement by figures which have been collected as nearest to approximation as humanly possible, Before citing figures, the state ment expressed the opinion that had it'not been for strong interference consistently exerted by the Japanese military authorities and the complicated political conditions obtaining North China, the Customs preventive service' which by the end of 1994 had been brought to a Slandard comparable to similar services In other—counties would have been able to deal a death blow to this illicit trade, Loans Threatened was also emphasized that as many foreign and domestic loa secured on the this Japanese-protected smuggling is "tar from. being a purely local matter, or a political consideration affecting only China and Japan, but the vital concern of all countries and their nationals concerned."

Gieaned from a maze of Agures as contained inthe Customs document, the following statistics and conclusions clearly show the serious situations In which the customs has Found itself owing to the rampant smuggling business:

"1)" Calculated total loss of Customs revenue on goods smuggled into North China from August 1, 1995 to April 30, 1996, amounted 10 $25,506,040, (2) Estimated loss of revenue for the month of April, 1936, alone was $6 million.

(3) Average loss of revenue per month from August, 1989, to March 1936 was estimated at $1,700,000.

14) Smuggling has increased in. a tremendously rapid pace since the beginning of April, 1936.

the present rate of approximately $8 million per month, the loss of revenue per year would be nearly $100. million, which is nearly one-third of the total annual Customs revenue for China Smuggled Goods (6) As to the approximate weekly amount of goods smuggled into North China "atthe Tientsin East Station from Chinwangtao, Peitaiho, Nantatze, Liushouying, and Changli the week from April 19 to April 25 (036) inclusive shows:

Text read from the printed page and cleaned; old type leaves the occasional error.

Your account